Raw materials are loaded into railcars at the point of extraction. Due to low cost per unit and ability to carry large volumes, rail is the best option for moving raw materials. Rail movements can be scheduled in line with the point of loading or with customers, building supply chain dependability.
By building track directly into a factory, or utilizing nearby transloading facilities to offload product from rail to truck, the factory can receive steady shipments of raw materials and experience cost savings using rail for long distance product movement that isn’t available with trucks.
Rail is a great option for distributing refined or finished products. The existing infrastructure can be utilized to ship the outbound product, equaling in cost savings. Because of containerized shipping, products that were once considered unsuitable for rail transit can now be easily accommodated.
For bulk products needing storage, rail yards are available until the product is sold and diverted to a final destination, or to hold until the end user accepts. Operations for offloading product into warehouses for repackaging and sorting are located on most railroads and transload facilities.